This is probably worth noting for those of you watching USD/JPY (which should be all of you assuming you trade or otherwise care about your investments).
USD/JPY hit its lowest level since late November earlier yesterday…
Around 1:50 EST, USD/JPY dipped to a fresh low 111.65 in a fast move as “stop-loss sell orders tripped under 112.00,” Bloomberg notes, adding that the “drop [was] likely exacerbated by light positioning, [as] an earlier drop to 111.99 failed to trip stops and intra-day shorts saw a squeeze to near 112.60 before USD declines resumed.”
As you can see from the chart above, “the yen gyrations come as the dollar rose against most other G-10 peers.”
To some extent this is a reflection of the same safe haven bid that’s boosted gold.
Watch that Trump/Abe meeting later this week because I can promise you everyone trading the yen will be tuned in.
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